Abbey cuts rates on fixed and flexible deals

From Thursday, (21 August) Abbey is reducing the rate on its two and three year fixed rate mortgages by up to 0.25 per cent. Rates now start from the following with a £995 fee:

2 year fixes from 5.89 per cent at 70 per cent LTV
3 year fixes from 5.79 per cent at 70 per cent LTV (£1,295 fee)
2 year fixes from 5.99 per cent at 75 per cent LTV
3 year fixes from 5.94 per cent at 75 per cent LTV

In addition, all Abbey's flexible offset mortgages are reducing by 0.2 per cent, so they now start from 6.23 per cent with a £1,499 fee. The flexible mortgage comes with a savings pot to allow borrowers to offset savings against the money owed, reducing the interest charged and helping to pay the mortgage off early.

Three-year tracker products are reducing by 0.1 per cent at 75 per cent LTV, now starting from 5.79 per cent, with a fee of £1,950.

Also, Abbey is reducing the rates on its fixed rate low loan, low fee mortgages, which are available for borrowing up to £150,000, starting from 6.04 per cent for 3 years up to 6.29 per cent with a £549 fee on a five-year fix.

Phil Cliff, Abbey's Director of Mortgages, commented: "These reductions demonstrate our continued effort to offer customers an excellent deal, in particular our flexible offset mortgages, which now start at 6.23 per cent, look very competitive."